# Find the value of q such that Aisha is indifferent between going or not going to school for an extra year. Provide an intuition for your finding.

## Question 3

A common way to measure human capital per worker is to suppose it is a function of schooling, namely h(s) = e” where s is years of schooling and q is a parameter. Let the income of a person with human capital h be W h.

1. a) Suppose Aisha is a representative worker in the economy and has completed s years of schooling, which means that she can earn We” in any given year forever (she is in-finitely lived). Find an expression for her present discounted lifetime income V(s) if the economy’s interest rate is r > 0, V(s) = We” + 1±„We” + (1÷,.)2 We” + b) Next, suppose that today, Aisha can decide to go to school for an additional year. During this year she cannot earn any income. In addition, she needs to pay an upfront tuition fee that is proportional to her yearly income, iWe”. From the next year onward she then earns an income Weg(‘±’) forever. Compute her present discounted lifetime in-come, V(s + 1).
2. c) Find the value of q such that Aisha is indifferent between going or not going to school for an extra year. Provide an intuition for your finding.

3Ftemember that geometric series are such that if 0 E (0,1), then EZ,, = 1+6 + =

1. d) In developed economies, the estimated return to an extra year of schooling is esti-mated to be roughly q = 0.068. The average interest rate is on the order of r = 0.04. What value of ry is consistent with these numbers? Moreover, given that Aisha is a rep-resentative worker, we can think of her income to be representative of the economy. In the UK, it amounts to roughly GBP 27,000. What, then, is the implied tuition fee in GBP?
2. e) Caselli (2005) uses the following function to estimate human capital across countries as a function of thee average years of schooling of their workers, h = e0(‘) where /0.134 x s if 8 4 0(s) = 0.134 x 4 + 0.101 x (s — 4) if4<s<8 0.134 x 4 + 0.101 X 4 + 0.068 X (s — 8) if 8 < s. What does this piece-wise linear function capture?
See also  Explain why the supply curve shifts upward when quantity increases.

Custompaper.help is an academic writing platform that provides students and professionals with quality services to ease their assignment challenges. With a wide range of services, the platform has become one of the leading academic writing service providers in the market due to its reliability and affordability. Below, we shall discuss some of the services which Custompaper.help provides:

Essay Writing Service
The essay writing service provides customers with quality essays on any subject or topic they requested within a given deadline. The writers at custompaper are experts in their respective fields, and they ensure customer satisfaction by producing original content with thorough research involved backed up with strong evidence from reliable sources available online or offline. All essays come with free plagiarism reports as well as revisions if needed so that customers can trust that they are getting high-quality work for their money’s worth.

Research Paper Writing Service
This is another popular service offered by custom paper help wherein customers are assisted in conducting research papers according to their needs and requirements within specified deadlines. Writers at custom paper help have vast knowledge about various topics belonging to different disciplines such as Management, Arts & Humanities, History etc., allowing them to craft impeccable research papers every time regardless of the complexity or urgency level requested by customers. Additionally, all our research papers come along with proper citation formats which ensures customer’s safety when it comes to plagiarism issues while also helping them save time on formatting procedures thus improving overall efficiency even further!

Dissertation Writing Service
CustomPaperHelp also offers dissertation writing assistance for those who need it most – students preparing for graduation or professionals wanting to further refine their skills through higher education levels such as Master/PhD degrees etc, Our team of writers consists of experienced individuals having Master’s/PhD degrees themselves so you can rest assured that your dissertation will be handled expertly from the start till the end! Furthermore, we offer unlimited revisions until your complete satisfaction is achieved, along with regular checkups being done throughout the process just so everything goes according to course without any hiccups!

If you already have written an essay but want professional feedback before submitting it, then CustomPaperHelp also offers editing & proofreading services which helps in identifying & rectifying errors present in assignments like grammar mistakes, spelling mistakes, punctuation problems etc., thereby ensuring top-notch quality work, before submission takes place! We understand how important accuracy & consistency are when it comes to grading systems used at universities nowadays, so taking extra care during this phase becomes absolutely essential if good grades are desired afterward!

See also  Critique one substantive theory in contemporary International Political Economy from the perspective of another.

Coursework Help
For those who find coursework difficult due to complications of being quite technical in nature; CustomPaperHelp extends its support here too, by providing quality solutions every single time – starting from understanding concepts properly up until composing flawless answers following university guidelines closely enough making sure no loopholes remain whatsoever! Whether it’s related math problem-solving algorithms or lengthy home assignments – our expert panel has got you covered from head-to-toe leaving no stone unturned during this very crucial stage since final grades depend largely upon the success rate achieved here successfully!

Assignment Help
Assignments form an integral part of getting better scores & ultimately, a degree itself (in case pursuing a masters/PhD) – something only possible if precision is made a priority right away; otherwise, chances of failure increase exponentially over a time period detrimentally affecting performance evaluation systems later down road drastically hence stressing timely importance completion prior commencement other operations associated same project altogether consistently meeting high standards expected each situation respectively! Here too, CustomPaperHelp presents comprehensive solution package exceeding expectations beyond point offering optimal values therein ensuring maximum satisfaction reached under circumstances prevailing accordingly without fail…proving once more why people trust us implicitly without second thought whatsoever!!

Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Over the years, our Acme Homework has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At Custom Paper Help, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email: support@acmehomework.com.

Try it now!

## Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Our Services

Custom Paper Help has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.

## Essay Writing Services

At Custom Paper Help, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.